Tabreed plans to issue up to $1 bln in bonds

DUBAI, Sept 9 (Reuters) - Dubai-listed National Central Cooling Co (Tabreed) is planning a potential issuance of up to $1 billion in bonds or sukuk with a tenor of up to 30 years, it said in a stock exchange filing published on Wednesday.

The company’s board authorised such an issuance, in one or more tranches, over the next 12 months and said the timing would be determined as it sees fit.

They will be offered to qualified investors but not be for public subscription in the United Arab Emirates and will not be listed on any UAE financial market.

In April, Tabreed bought an 80% stake in Emaar Properties’ Downtown Dubai district cooling business for 2.48 billion dirhams ($675.23 million). Emaar kept a 20% share in the business.

Tabreed has closed the syndication of a $692 million five-year loan that was pre-funded by HSBC in March to fund the acquisition, it said in a statement on Wednesday.

The loan will also “support the development of a new state-of-the-art district cooling plant in Downtown Dubai.”

Maturing in March 2025, the syndicated loan has Islamic and conventional tranches.

Tabreed’s biggest shareholders are France’s Engie SA and Abu Dhabi state fund Mubadala Investment Company.

$1 = 3.6728 UAE dirham Reporting by Yousef Saba Editing by Alexandra Hudson